UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date Of Report (Date Of Earliest Event Reported) July 22, 2015
 
 
AutoNation, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
1-13107   
 
73-1105145
(State or other jurisdiction
of incorporation)
 
(Commission     
File Number)     
 
(IRS Employer
Identification No.)
200 SW 1st Ave
Fort Lauderdale, Florida 33301
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (954) 769-6000
 
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 






Item 2.02
Results of Operations and Financial Condition.
On July 22, 2015, AutoNation, Inc. (“AutoNation” or the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended June 30, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits

99.1
Press Release of AutoNation, Inc. dated July 22, 2015 regarding results of operations for the fiscal quarter ended June 30, 2015.





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
AUTONATION, INC.
 
 
 
 
 
 
Date:
July 22, 2015
 
By:
 
/s/ Jonathan P. Ferrando
 
 
 
 
 
Jonathan P. Ferrando
 
 
 
 
 
Executive Vice President - General Counsel, Corporate Development and Human Resources







Exhibit 99.1
 
 
 
 
Contact: Marc Cannon
(954) 769-3146
cannonm@autonation.com
 
Investor contacts: Andrew Wamser
(954) 769-7023
wamsera@autonation.com

Robert Quartaro
(954) 769-7342
quartaror@autonation.com

AutoNation Reports Record Second Quarter EPS from Continuing Operations
 
EPS from continuing operations was $1.00, a record for second quarter results and an increase of 20% compared to the year-ago period
Total gross profit of $819 million was an all-time record and an increase of 10% compared to the year-ago period
Total revenue of $5.2 billion, up 9% compared to the year-ago period, increasing across all major business sectors; operating income of $222 million, an increase of 12% compared to the year-ago period

FORT LAUDERDALE, Fla., (July 22, 2015) — AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported 2015 second quarter net income from continuing operations of $115 million, a record for second quarter results, or $1.00 per share, compared to net income from continuing operations of $101 million, or $0.83 per share, for the same period in the prior year, a 20% improvement on a per-share basis.
Second quarter 2015 revenue totaled $5.2 billion, compared to $4.8 billion in the year-ago period, an increase of 9%, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. In the second quarter of 2015, AutoNation’s retail new vehicle unit sales increased 6% overall and 4% on a same store basis, while retail used vehicle unit sales increased 9% overall and 7% on a same store basis.
Mike Jackson, Chairman, Chief Executive Officer and President, said, “AutoNation delivered its 19th consecutive quarter of double-digit year-over-year growth in EPS. We reconfirm our expectation of U.S. industry new vehicle unit sales to be above 17 million units in 2015.”
Mr. Jackson also said, “We are pleased with how the AutoNation brand has been embraced, as well as the continued rollout of AutoNation Express and the progress of all our digital initiatives. Over 20% of our sales were generated through AutoNation websites for the first half of the year. The first phase of AutoNation Express, where a consumer can identify a vehicle, reserve that vehicle and put a deposit on that vehicle, was completed six months ahead of schedule. AutoNation is committed to providing transparency and delivering a peerless customer experience through initiatives such as AutoNation Express.”
Commercial Paper
In May 2015, AutoNation established a new financing program pursuant to which it may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $300.0 million. At June 30, 2015, AutoNation had $298.5 million of commercial paper notes outstanding.
Share Repurchase
During the second quarter of 2015, AutoNation repurchased 0.8 million shares of common stock for an aggregate purchase price of $50 million. As of July 20, 2015, AutoNation has approximately $217 million remaining Board authorization for share repurchase and 113 million shares outstanding.
Segment Results
Segment results(1) for the second quarter of 2015 were as follows:
Domestic – Domestic segment income(2) was $85 million compared to year-ago segment income of $71 million, an increase of 20%.





Import – Import segment income(2) was $80 million compared to year-ago segment income of $78 million, an increase of 3%.
Premium Luxury – Premium Luxury segment income(2) was $94 million compared to year-ago segment income of $86 million, an increase of 10%.
For the six-month period ended June 30, 2015, the Company reported net income from continuing operations of $227 million, or $1.97 per share, compared to adjusted net income from continuing operations of $191 million, or $1.58 per share, for the same period in the prior year, an improvement of 25% on a per-share basis. On a GAAP basis, net income from continuing operations for the six-month period ended June 30, 2014 was $196 million, or $1.62 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables. The Company’s revenue for the six-month period ended June 30, 2015, totaled $10.2 billion, up 11% compared to $9.2 billion for the same period in the prior year.
The second quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time today or on AutoNation’s investor relations website at http://investors.autonation.com.
The webcast will also be available on AutoNation’s website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on July 22, 2015 through August 6, 2015 by calling (800) 568-3942 (password 75300).
  
(1) 
AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and FCA US (formerly Chrysler); the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.
(2) 
Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
About AutoNation, Inc.
AutoNation is transforming the automotive retail industry through bold leadership. We deliver a peerless automotive retail experience through our customer-focused sales and service processes. Owning and operating 293 new vehicle franchises, which sell 35 new vehicle brands across 15 states, AutoNation is America’s largest automotive retailer, with state-of-the-art operations and the ability to leverage economies of scale that benefit the customer. As an indication of our leadership position in our industry, AutoNation is a component of the S&P 500 Index. 
Please visit investors.autonation.com, www.autonation.com, www.autonationdrive.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “continues,” “may,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives and expectations for the future performance of our franchises and the automotive retail industry, as well as statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; economic conditions, including conditions in the credit markets and changes in interest rates; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; restrictions imposed by vehicle manufacturers; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q





and our Current Reports on Form 8-K.  Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Company’s results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company’s results from its core business operations.





AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
($ in millions, except per share data)
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
 
New vehicle
 
$
2,967.8

 
$
2,736.9

 
$
5,737.4

 
$
5,165.5

Used vehicle
 
1,216.3

 
1,082.3

 
2,409.5

 
2,132.0

Parts and service
 
777.8

 
704.8

 
1,521.2

 
1,375.8

Finance and insurance, net
 
217.7

 
185.4

 
425.3

 
357.8

Other
 
44.7

 
79.1

 
75.1

 
120.9

Total revenue
 
5,224.3

 
4,788.5

 
10,168.5

 
9,152.0

Cost of sales:
 
 
 
 
 
 
 
 
New vehicle
 
2,801.7

 
2,575.3

 
5,409.8

 
4,858.0

Used vehicle
 
1,125.2

 
993.0

 
2,214.7

 
1,948.4

Parts and service
 
440.6

 
404.0

 
864.0

 
788.3

Other
 
37.7

 
71.3

 
61.0

 
105.0

Total cost of sales
 
4,405.2

 
4,043.6

 
8,549.5

 
7,699.7

Gross profit
 
819.1

 
744.9

 
1,619.0

 
1,452.3

Selling, general, and administrative expenses
 
568.7

 
524.6

 
1,126.3

 
1,025.3

Depreciation and amortization
 
32.1

 
26.2

 
60.8

 
51.8

Other income, net
 
(3.8
)
 
(3.7
)
 
(5.1
)
 
(11.7
)
Operating income
 
222.1

 
197.8

 
437.0

 
386.9

Non-operating income (expense) items:
 
 
 
 
 
 
 
 
Floorplan interest expense
 
(14.2
)
 
(13.3
)
 
(27.4
)
 
(26.5
)
Other interest expense
 
(21.6
)
 
(21.3
)
 
(43.0
)
 
(42.9
)
Interest income
 

 
0.1

 
0.1

 
0.1

Other income, net
 
0.5

 
0.9

 
1.6

 
2.4

Income from continuing operations before income taxes
 
186.8

 
164.2

 
368.3

 
320.0

Income tax provision
 
71.6

 
63.5

 
141.4

 
123.8

Net income from continuing operations
 
115.2

 
100.7

 
226.9

 
196.2

Loss from discontinued operations, net of income taxes
 
(0.1
)
 
(0.3
)
 
(0.3
)
 
(0.7
)
Net income
 
$
115.1

 
$
100.4

 
$
226.6

 
$
195.5

Diluted earnings (loss) per share*:
 
 
 
 
 
 
 
 
Continuing operations
 
$
1.00

 
$
0.83

 
$
1.97

 
$
1.62

Discontinued operations
 
$

 
$

 
$

 
$
(0.01
)
Net income
 
$
1.00

 
$
0.83

 
$
1.97

 
$
1.61

Weighted average common shares outstanding
 
115.1

 
120.8

 
115.1

 
121.1

Common shares outstanding, net of treasury stock, at period end
 
113.4

 
118.5

 
113.4

 
118.5



* Earnings per share amounts are calculated discretely and therefore may not add up to the total.





AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
$ Variance
 
% Variance
 
2015
 
2014
 
$ Variance
 
% Variance
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
2,967.8

 
$
2,736.9

 
$
230.9

 
8.4

 
$
5,737.4

 
$
5,165.5

 
$
571.9

 
11.1

Retail used vehicle
 
1,109.1

 
989.1

 
120.0

 
12.1

 
2,203.2

 
1,934.9

 
268.3

 
13.9

Wholesale
 
107.2

 
93.2

 
14.0

 
15.0

 
206.3

 
197.1

 
9.2

 
4.7

Used vehicle
 
1,216.3

 
1,082.3

 
134.0

 
12.4

 
2,409.5

 
2,132.0

 
277.5

 
13.0

Finance and insurance, net
 
217.7

 
185.4

 
32.3

 
17.4

 
425.3

 
357.8

 
67.5

 
18.9

Total variable operations
 
4,401.8

 
4,004.6

 
397.2

 
9.9

 
8,572.2

 
7,655.3

 
916.9

 
12.0

Parts and service
 
777.8

 
704.8

 
73.0

 
10.4

 
1,521.2

 
1,375.8

 
145.4

 
10.6

Other
 
44.7

 
79.1

 
(34.4
)
 

 
75.1

 
120.9

 
(45.8
)
 

Total revenue
 
$
5,224.3

 
$
4,788.5

 
$
435.8

 
9.1

 
$
10,168.5

 
$
9,152.0

 
$
1,016.5

 
11.1

Gross profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
166.1

 
$
161.6

 
$
4.5

 
2.8

 
$
327.6

 
$
307.5

 
$
20.1

 
6.5

Retail used vehicle
 
91.4

 
88.7

 
2.7

 
3.0

 
193.9

 
181.5

 
12.4

 
6.8

Wholesale
 
(0.3
)
 
0.6

 
(0.9
)
 
 
 
0.9

 
2.1

 
(1.2
)
 
 
Used vehicle
 
91.1

 
89.3

 
1.8

 
2.0

 
194.8

 
183.6

 
11.2

 
6.1

Finance and insurance
 
217.7

 
185.4

 
32.3

 
17.4

 
425.3

 
357.8

 
67.5

 
18.9

Total variable operations
 
474.9

 
436.3

 
38.6

 
8.8

 
947.7

 
848.9

 
98.8

 
11.6

Parts and service
 
337.2

 
300.8

 
36.4

 
12.1

 
657.2

 
587.5

 
69.7

 
11.9

Other
 
7.0

 
7.8

 
(0.8
)
 
 
 
14.1

 
15.9

 
(1.8
)
 
 
Total gross profit
 
819.1

 
744.9

 
74.2

 
10.0

 
1,619.0

 
1,452.3

 
166.7

 
11.5

Selling, general, and administrative expenses
 
568.7

 
524.6

 
(44.1
)
 
(8.4
)
 
1,126.3

 
1,025.3

 
(101.0
)
 
(9.9
)
Depreciation and amortization
 
32.1

 
26.2

 
(5.9
)
 
 
 
60.8

 
51.8

 
(9.0
)
 
 
Other income, net
 
(3.8
)
 
(3.7
)
 
0.1

 
 
 
(5.1
)
 
(11.7
)
 
(6.6
)
 
 
Operating income
 
222.1

 
197.8

 
24.3

 
12.3

 
437.0


386.9

 
50.1

 
12.9

Non-operating income (expense) items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floorplan interest expense
 
(14.2
)
 
(13.3
)
 
(0.9
)
 
 
 
(27.4
)
 
(26.5
)
 
(0.9
)
 
 
Other interest expense
 
(21.6
)
 
(21.3
)
 
(0.3
)
 
 
 
(43.0
)
 
(42.9
)
 
(0.1
)
 
 
Interest income
 

 
0.1

 
(0.1
)
 
 
 
0.1

 
0.1

 

 
 
Other income, net
 
0.5

 
0.9

 
(0.4
)
 
 
 
1.6

 
2.4

 
(0.8
)
 
 
Income from continuing operations before income taxes
 
$
186.8

 
$
164.2

 
$
22.6

 
13.8

 
$
368.3

 
$
320.0

 
$
48.3

 
15.1

Retail vehicle unit sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
85,245

 
80,554

 
4,691

 
5.8

 
163,805

 
151,777

 
12,028

 
7.9

Used
 
57,370

 
52,656

 
4,714

 
9.0

 
115,994

 
104,792

 
11,202

 
10.7

 
 
142,615

 
133,210

 
9,405

 
7.1

 
279,799

 
256,569

 
23,230

 
9.1

Revenue per vehicle retailed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
$
34,815

 
$
33,976

 
$
839

 
2.5

 
$
35,026

 
$
34,033

 
$
993

 
2.9

Used
 
$
19,332

 
$
18,784

 
$
548

 
2.9

 
$
18,994

 
$
18,464

 
$
530

 
2.9

Gross profit per vehicle retailed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
$
1,949

 
$
2,006

 
$
(57
)
 
(2.8
)
 
$
2,000

 
$
2,026

 
$
(26
)
 
(1.3
)
Used
 
$
1,593

 
$
1,685

 
$
(92
)
 
(5.5
)
 
$
1,672

 
$
1,732

 
$
(60
)
 
(3.5
)
Finance and insurance
 
$
1,526

 
$
1,392

 
$
134

 
9.6

 
$
1,520

 
$
1,395

 
$
125

 
9.0

Total variable operations(1)
 
$
3,332

 
$
3,271

 
$
61

 
1.9

 
$
3,384

 
$
3,300

 
$
84

 
2.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.






Operating Percentages
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015 (%)
 
2014 (%)
 
2015 (%)
 
2014 (%)
Revenue mix percentages:
 
 
 
 
 
 
 
 
New vehicle
 
56.8
 
57.2
 
56.4
 
56.4
Used vehicle
 
23.3
 
22.6
 
23.7
 
23.3
Parts and service
 
14.9
 
14.7
 
15.0
 
15.0
Finance and insurance, net
 
4.2
 
3.9
 
4.2
 
3.9
Other
 
0.8
 
1.6
 
0.7
 
1.4
 
 
100.0
 
100.0
 
100.0
 
100.0
Gross profit mix percentages:
 
 
 
 
 
 
 
 
New vehicle
 
20.3
 
21.7
 
20.2
 
21.2
Used vehicle
 
11.1
 
12.0
 
12.0
 
12.6
Parts and service
 
41.2
 
40.4
 
40.6
 
40.5
Finance and insurance
 
26.6
 
24.9
 
26.3
 
24.6
Other
 
0.8
 
1.0
 
0.9
 
1.1
 
 
100.0
 
100.0
 
100.0
 
100.0
Operating items as a percentage of revenue:
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
New vehicle
 
5.6
 
5.9
 
5.7
 
6.0
Used vehicle - retail
 
8.2
 
9.0
 
8.8
 
9.4
Parts and service
 
43.4
 
42.7
 
43.2
 
42.7
Total
 
15.7
 
15.6
 
15.9
 
15.9
Selling, general and administrative expenses
 
10.9
 
11.0
 
11.1
 
11.2
Operating income
 
4.3
 
4.1
 
4.3
 
4.2
Operating items as a percentage of total gross profit:
 
 
 
 
 
 
 
 
Selling, general, and administrative expenses
 
69.4
 
70.4
 
69.6
 
70.6
Operating income
 
27.1
 
26.6
 
27.0
 
26.6
 






AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)
 
Segment Operating Highlights
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
$ Variance
 
% Variance
 
2015
 
2014
 
$ Variance
 
% Variance
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
1,764.2

 
$
1,604.9

 
$
159.3

 
9.9

 
$
3,429.9

 
$
3,077.9

 
$
352.0

 
11.4
Import
 
1,795.0

 
1,717.8

 
77.2

 
4.5

 
3,473.7

 
3,267.2

 
206.5

 
6.3
Premium luxury
 
1,633.0

 
1,431.9

 
201.1

 
14.0

 
3,196.2

 
2,738.3

 
457.9

 
16.7
Total
 
5,192.2

 
4,754.6

 
437.6

 
9.2

 
10,099.8

 
9,083.4

 
1,016.4

 
11.2
Corporate and other
 
32.1

 
33.9

 
(1.8
)
 
(5.3
)
 
68.7

 
68.6

 
0.1

 
0.1
Total consolidated revenue
 
$
5,224.3

 
$
4,788.5

 
$
435.8

 
9.1

 
$
10,168.5

 
$
9,152.0

 
$
1,016.5

 
11.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income*:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
84.9

 
$
70.5

 
$
14.4

 
20.4

 
$
164.2

 
$
134.3

 
$
29.9

 
22.3
Import
 
80.1

 
77.5

 
2.6

 
3.4

 
155.1

 
142.9

 
12.2

 
8.5
Premium luxury
 
94.4

 
85.8

 
8.6

 
10.0

 
188.5

 
169.1

 
19.4

 
11.5
Total
 
259.4

 
233.8

 
25.6

 
10.9

 
507.8

 
446.3

 
61.5

 
13.8
Corporate and other
 
(51.5
)
 
(49.3
)
 
(2.2
)
 
 
 
(98.2
)
 
(85.9
)
 
(12.3
)
 
 
Add: Floorplan interest expense
 
14.2

 
13.3

 
0.9

 
 
 
27.4

 
26.5

 
0.9

 
 
Operating income
 
$
222.1

 
$
197.8

 
$
24.3

 
12.3

 
$
437.0

 
$
386.9

 
$
50.1

 
12.9
 
* Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail new vehicle unit sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
27,871

 
26,182

 
1,689

 
6.5

 
53,621

 
49,997

 
3,624

 
7.2
Import
 
40,279

 
39,685

 
594

 
1.5

 
77,193

 
74,610

 
2,583

 
3.5
Premium luxury
 
17,095

 
14,687

 
2,408

 
16.4

 
32,991

 
27,170

 
5,821

 
21.4
 
 
85,245

 
80,554

 
4,691

 
5.8

 
163,805

 
151,777

 
12,028

 
7.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brand Mix - New Vehicle Retail Units Sold
 
Three Months Ended
 
Six Months Ended
 
 
 
 
 
 
 
June 30,
 
June 30,
 
 
 
 
 
 
 
 
2015 (%)
 
2014 (%)
 
2015 (%)
 
2014 (%)
 
 
 
 
 
 
 
 
Domestic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ford, Lincoln
 
15.8

 
16.7

 
16.1

 
17.2

 
 
 
 
 
 
 
 
Chevrolet, Buick, Cadillac, GMC
 
10.2

 
9.9

 
10.0

 
9.9

 
 
 
 
 
 
 
 
Chrysler, Jeep, Dodge
 
6.7

 
5.9

 
6.6

 
5.8

 
 
 
 
 
 
 
 
Domestic total
 
32.7

 
32.5

 
32.7

 
32.9

 
 
 
 
 
 
 
 
Import:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Honda
 
11.3

 
12.3

 
11.1

 
11.8

 
 
 
 
 
 
 
 
Toyota
 
19.3

 
19.6

 
19.0

 
19.3

 
 
 
 
 
 
 
 
Nissan
 
9.8

 
10.5

 
9.9

 
11.0

 
 
 
 
 
 
 
 
Other imports
 
6.8

 
6.9

 
7.2

 
7.1

 
 
 
 
 
 
 
 
Import total
 
47.2

 
49.3

 
47.2

 
49.2

 
 
 
 
 
 
 
 
Premium Luxury:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mercedes-Benz
 
8.4

 
7.1

 
8.2

 
7.3

 
 
 
 
 
 
 
 
BMW
 
4.5

 
4.9

 
4.7

 
4.8

 
 
 
 
 
 
 
 
Lexus
 
2.7

 
2.6

 
2.9

 
2.6

 
 
 
 
 
 
 
 
Audi
 
2.1

 
1.5

 
2.0

 
1.3

 
 
 
 
 
 
 
 
Other premium luxury (Land Rover, Porsche)
 
2.4

 
2.1

 
2.3

 
1.9

 
 
 
 
 
 
 
 
Premium Luxury total
 
20.1

 
18.2

 
20.1

 
17.9

 
 
 
 
 
 
 
 
 
 
100.0

 
100.0

 
100.0

 
100.0

 
 
 
 
 
 
 
 





 AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)
 
Capital Expenditures / Stock Repurchases
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Capital expenditures (1)
$
71.2

 
$
52.9

 
$
134.1

 
$
87.8

Cash paid for acquisitions (2) 
$
45.4

 
$

 
$
73.1

 
$

Proceeds from exercises of stock options
$
6.3

 
$
6.8

 
$
18.8

 
$
22.1

Stock repurchases:
 
 
 
 
 
 
 
Aggregate purchase price
$
50.0

 
$
64.1

 
$
59.1

 
$
179.8

Shares repurchased (in millions)
0.8

 
1.1

 
0.9

 
3.6

 
Floorplan Assistance and Expense
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
Variance
 
2015
 
2014
 
Variance
Floorplan assistance earned (included in cost of sales)
 
$
29.4

 
$
26.7

 
$
2.7

 
$
56.1

 
$
50.7

 
$
5.4

New vehicle floorplan interest expense
 
(13.4
)
 
(12.6
)
 
(0.8
)
 
(25.8
)
 
(25.3
)
 
(0.5
)
Net new vehicle inventory carrying benefit
 
$
16.0

 
$
14.1

 
$
1.9

 
$
30.3

 
$
25.4

 
$
4.9

 
Balance Sheet and Other Highlights
 
June 30, 2015
 
December 31, 2014
 
June 30, 2014
Cash and cash equivalents
 
$
65.3

 
$
75.4

 
$
68.5

Inventory
 
$
3,230.7

 
$
2,899.0

 
$
2,776.6

Total floorplan notes payable
 
$
3,321.4

 
$
3,097.2

 
$
2,869.1

Non-vehicle debt
 
$
2,128.6

 
$
2,128.4

 
$
1,883.2

Equity
 
$
2,285.3

 
$
2,072.1

 
$
2,125.1

 
 
 
 
 
 
 
New days supply (industry standard of selling days)
 
63 days

 
54 days

 
59 days

Used days supply (trailing calendar month days)
 
36 days

 
38 days

 
36 days

 
 
Key Credit Agreement Covenant Compliance Calculations
 
 
Ratio of funded indebtedness/
 
 
Adjusted EBITDA
 
2.18x
Covenant
less than or equal to
3.75x
 
Ratio of funded indebtedness including floorplan/
 
 
Total capitalization including floorplan
 
58.8
%
Covenant
less than or equal to
70.0
%
 

(1) Includes accrued construction in progress and excludes property acquired under capital leases.
(2) Excludes capital leases.







AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
 
Comparable Basis Reconciliations*
 
Three Months Ended June 30,
 
 
Net Income
 
Diluted Earnings Per Share**
 
 
2015
 
2014
 
2015
 
2014
As reported
 
$
115.1

 
$
100.4

 
$
1.00

 
$
0.83

Discontinued operations, net of income taxes
 
0.1

 
0.3

 
$

 
$

From continuing operations, as reported
 
115.2

 
100.7

 
$
1.00

 
$
0.83

 
 
 
 
 
 
 
 
 
Adjusted
 
$
115.2

 
$
100.7

 
$
1.00

 
$
0.83

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
Net Income
 
Diluted Earnings Per Share**
 
 
2015
 
2014
 
2015
 
2014
As reported
 
$
226.6

 
$
195.5

 
$
1.97

 
$
1.61

Discontinued operations, net of income taxes
 
0.3

 
0.7

 
$

 
$
0.01

From continuing operations, as reported
 
226.9

 
196.2

 
$
1.97

 
$
1.62

Net gain related to business/property dispositions
 

 
(5.0
)
 
$

 
$
(0.04
)
Adjusted
 
$
226.9

 
$
191.2

 
$
1.97

 
$
1.58

*
Please refer to the “Non-GAAP Financial Measures” section of the Press Release.
**
Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total.






AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
 
Operating Highlights
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
$ Variance
 
% Variance
 
2015
 
2014
 
$ Variance
 
% Variance
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
2,866.7

 
$
2,723.2

 
$
143.5

 
5.3

 
$
5,558.7

 
$
5,138.2

 
$
420.5

 
8.2

Retail used vehicle
 
1,069.0

 
982.9

 
86.1

 
8.8

 
2,129.8

 
1,922.5

 
207.3

 
10.8

Wholesale
 
105.1

 
92.9

 
12.2

 
13.1

 
202.5

 
196.6

 
5.9

 
3.0

Used vehicle
 
1,174.1

 
1,075.8

 
98.3

 
9.1

 
2,332.3

 
2,119.1

 
213.2

 
10.1

Finance and insurance, net
 
212.1

 
184.4

 
27.7

 
15.0

 
415.5

 
355.9

 
59.6

 
16.7

Total variable operations
 
4,252.9

 
3,983.4

 
269.5

 
6.8

 
8,306.5

 
7,613.2

 
693.3

 
9.1

Parts and service
 
751.4

 
700.3

 
51.1

 
7.3

 
1,474.1

 
1,366.6

 
107.5

 
7.9

Other
 
44.7

 
79.2

 
(34.5
)
 
 
 
75.0

 
119.7

 
(44.7
)
 
 
Total revenue
 
$
5,049.0

 
$
4,762.9

 
$
286.1

 
6.0

 
$
9,855.6


$
9,099.5

 
$
756.1

 
8.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
158.2

 
$
160.9

 
$
(2.7
)
 
(1.7
)
 
$
312.5

 
$
306.0

 
$
6.5

 
2.1

Retail used vehicle
 
88.7

 
88.0

 
0.7

 
0.8

 
188.4

 
180.0

 
8.4

 
4.7

Wholesale
 
(0.3
)
 
0.7

 
(1.0
)
 
 
 
0.9

 
2.2

 
(1.3
)
 
 
Used vehicle
 
88.4

 
88.7

 
(0.3
)
 
(0.3
)
 
189.3

 
182.2

 
7.1

 
3.9

Finance and insurance
 
212.1

 
184.4

 
27.7

 
15.0

 
415.5

 
355.9

 
59.6

 
16.7

Total variable operations
 
458.7

 
434.0

 
24.7

 
5.7

 
917.3

 
844.1

 
73.2

 
8.7

Parts and service
 
324.3

 
298.6

 
25.7

 
8.6

 
634.4

 
583.2

 
51.2

 
8.8

Other
 
6.7

 
7.8

 
(1.1
)
 
 
 
13.4

 
15.6

 
(2.2
)
 
 
Total gross profit
 
$
789.7

 
$
740.4

 
$
49.3

 
6.7

 
$
1,565.1

 
$
1,442.9

 
$
122.2

 
8.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail vehicle unit sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
83,027

 
80,011

 
3,016

 
3.8

 
159,946

 
150,687

 
9,259

 
6.1

Used
 
55,780

 
52,218

 
3,562

 
6.8

 
113,133

 
103,892

 
9,241

 
8.9

 
 
138,807

 
132,229

 
6,578

 
5.0

 
273,079

 
254,579

 
18,500

 
7.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue per vehicle retailed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
$
34,527

 
$
34,035

 
$
492

 
1.4

 
$
34,754

 
$
34,098

 
$
656

 
1.9

Used
 
$
19,165

 
$
18,823

 
$
342

 
1.8

 
$
18,826

 
$
18,505

 
$
321

 
1.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit per vehicle retailed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
$
1,905

 
$
2,011

 
$
(106
)
 
(5.3
)
 
$
1,954

 
$
2,031

 
$
(77
)
 
(3.8
)
Used
 
$
1,590

 
$
1,685

 
$
(95
)
 
(5.6
)
 
$
1,665

 
$
1,733

 
$
(68
)
 
(3.9
)
Finance and insurance
 
$
1,528

 
$
1,395

 
$
133

 
9.5

 
$
1,522

 
$
1,398

 
$
124

 
8.9

Total variable operations(1)
 
$
3,307

 
$
3,277

 
$
30

 
0.9

 
$
3,356

 
$
3,307

 
$
49

 
1.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.
 





Operating Percentages
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015 (%)
 
2014 (%)
 
2015 (%)
 
2014 (%)
Revenue mix percentages:
 
 
 
 
 
 
 
 
New vehicle
 
56.8
 
57.2
 
56.4
 
56.5
Used vehicle
 
23.3
 
22.6
 
23.7
 
23.3
Parts and service
 
14.9
 
14.7
 
15.0
 
15.0
Finance and insurance, net
 
4.2
 
3.9
 
4.2
 
3.9
Other
 
0.8
 
1.6
 
0.7
 
1.3
 
 
100.0
 
100.0
 
100.0
 
100.0
Gross profit mix percentages:
 
 
 
 
 
 
 
 
New vehicle
 
20.0
 
21.7
 
20.0
 
21.2
Used vehicle
 
11.2
 
12.0
 
12.1
 
12.6
Parts and service
 
41.1
 
40.3
 
40.5
 
40.4
Finance and insurance
 
26.9
 
24.9
 
26.5
 
24.7
Other
 
0.8
 
1.1
 
0.9
 
1.1
 
 
100.0
 
100.0
 
100.0
 
100.0
Operating items as a percentage of revenue:
 
 
 
 
 
 
 
 
Gross Profit:
 
 
 
 
 
 
 
 
New vehicle
 
5.5
 
5.9
 
5.6
 
6.0
Used vehicle - retail
 
8.3
 
9.0
 
8.8
 
9.4
Parts and service
 
43.2
 
42.6
 
43.0
 
42.7
Total
 
15.6
 
15.5
 
15.9
 
15.9



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